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REPORT OF THE BOARD OF MANAGEMENT
ANNUAL REPORT 2016 – BOSKALIS
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The operating result includes our share in the net result of joint
ventures and associated companies (adjusted for impairment
charges), which amounted to EUR 11.3 million (2015:
EUR 43.3 million). This decline was largely attributable to the results
related to our investment in Fugro, which on balance amounted to
EUR 30.1 million loss (2015: EUR 3.1 million loss).
After pre-tax impairment charges of EUR 842.6 million (2015:
EUR 14.5 million), the EBIT amounted to a negative
EUR 458.1 million (2015: positive EUR 562.8 million).
Within Dredging & Inland Infra, lower revenues and an associated
decline in equipment utilization led to a lower result. The results on
projects in progress or in the process of being completed were
reasonable.
Offshore Energy achieved a still satisfactory result, despite
worsened market conditions. This result was supported by a strong
contribution from offshore wind projects, including the
VolkerWessels activities that were acquired mid-2016.
Towage & Salvage closed the year with a lower result as a
consequence of the deconsolidation of the European harbor
towage activities, a lower result from several joint ventures and
associated companies, and a lower level of activity of Salvage.
Non-allocated group income and expenses amounted to a positive
EUR 6.5 million (2015: negative EUR 51.8 million). In addition to
the usual non-allocated head office costs this included a book
profit on the KOTUG SMIT transaction (EUR 34.0 million pretax),
a book profit from the revaluation to fair value of our existing 50%
share in VBMS (EUR 39.8 million) on acquiring the remaining
50% of VBMS, a book profit on the sale of SMIT Amandla Marine
(EUR 8.3 million) and the results related to our investment in Fugro
(EUR 30.1 million loss).
RESULT BY SEGMENT (EBIT)
2016
2015
(in EUR million)
Dredging & Inland Infra
119.7
299.5
Offshore Energy
209.5
250.5
Towage & Salvage
48.8
79.1
Non-allocated group income and
expenses
6.5
-51.8
Impairment charges
-842.6
-14.5
Total
-458.1
562.8
NET PROFIT
EBIT was a negative EUR 458.1 million. Net financing expenses,
including a non-recurring cost of EUR 40.3 million related to the
early repayment of the 2010 US Private Placement, amounted to
EUR 71.3 million, resulting in a pre-tax loss of EUR 529.4 million.
The net loss attributable to shareholders was EUR 563.7 million,
compared to a profit of EUR 440.2 million in 2015.
For the purpose of determining the dividend, the net loss
attributable to shareholders will be adjusted for the post-tax effect
of impairment charges of EUR 840.1 million, resulting in an
adjusted net profit of EUR 276.4 million.
ORDER BOOK
In 2016 Boskalis acquired, on balance, EUR 2,543 million worth
of new contracts, excluding the effects from acquisitions and
divestments. At the end of the year the order book, excluding our
share in the order books of joint ventures and associated
companies, stood at EUR 2,924 million (end-2015:
EUR 2,490 million).
ORDER BOOK
2016
2015
(in EUR million)
Dredging & Inland Infra
1,892.5
1,506.9
Offshore Energy
1,023.9
975.2
Towage & Salvage
7.5
7.9
Total
2,923.9
2,490.0
DREDGING & INLAND INFRA
Construction, maintenance and deepening of ports and
waterways, land reclamation, coastal defense and riverbank
protection, underwater rock fragmentation and the extraction of
minerals using dredging techniques. Construction of roads and
railroads, bridges, aqueducts, viaducts and tunnels including
earthmoving, soil improvement and remediation – mainly in the
Netherlands.
DREDGING & INLAND INFRA
2016
2015
(in EUR million)
Revenue
1,164.5
1,727.2
EBITDA
223.0
400.4
Net result from JVs and associates
3.6
2.9
Operating result*
119.7
299.5
Order book at year-end
1,892.5
1,506.9
* Excluding impairments
REVENUE
Revenue in the Dredging & Inland Infra segment amounted to
EUR 1,164 million (2015: EUR 1,727 million).
REVENUE BY MARKET
2016
2015
(in EUR million)
The Netherlands
465.9
455.2
Rest of Europe
272.7
287.9
Rest of the world
425.9
984.1
Total
1,164.5
1,727.2
The Netherlands
In 2016 revenue in the Dutch market increased to
EUR 465.9 million. Both the first and second half of the year saw
a lot of work performed on various Room for the River projects.
The SAAone project (A1-A6 motorway) and the Buitenring
Parkstad Limburg projects also delivered a good contribution to
revenue. The first phase of the construction of the Marker Wadden
nature reserve island, commissioned by Dutch environmental
organization Natuurmonumenten, in the Markermeer lake
commenced in 2016.